Average Daily Volume
5.76M
Fund Overview
The Communication Services Select Sector SPDR Fund (XLC) is an ETF that seeks to provide investment results that correspond generally to the price and yield performance of the Communication Services Select Sector Index. The index includes companies from the communication services sector, such as those involved in telecommunications, media, entertainment, and interactive media & services. XLC offers targeted exposure to a segment of the S&P 500, making it a focused play on the communication services industry. The fund is market-cap weighted, meaning larger companies have a greater influence on its performance. XLC is a popular choice for investors looking to gain diversified exposure to leading communication services companies in a single investment vehicle.
- Asset Class
-
Equity
- Industry
-
Broad Telecom
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.12 %
- Currency Hedged
-
No
- Portfolio Turnover
-
25 %
- Dividend Date
-
Why Invest in the XLC ETF?
Potential Benefits
- Provides concentrated exposure to the dynamic and growing communication services sector.
- Low expense ratio compared to actively managed funds in the same sector.
- Liquidity is high due to its large assets under management (AUM) and tight bid-ask spreads.
- Diversified holdings across major companies like Meta (Facebook), Alphabet (Google), and Netflix.
- Transparent and rules-based methodology tied to a well-known S&P 500 sub-index.
Potential Risks
- Sector concentration risk—performance heavily tied to the communication services industry.
- Vulnerable to regulatory changes affecting media and telecommunications companies.
- High volatility due to the tech-heavy nature of some holdings.
- Market-cap weighting means top holdings dominate performance, potentially reducing diversification benefits.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+2.0%
|
-1.7%
|
-5.8%
|
+5.1%
|
-0.7%
|
-7.2%
|
+1.0%
|
+3.0%
|
-0.1%
|
+0.6%
|
-
|
-
|
| 2025 |
+5.8%
|
-0.4%
|
-5.2%
|
-1.0%
|
+6.2%
|
+7.3%
|
-1.0%
|
+3.7%
|
+6.6%
|
-3.0%
|
+0.5%
|
+2.3%
|
| 2024 |
+4.4%
|
+4.6%
|
+3.2%
|
-4.7%
|
+6.9%
|
+3.2%
|
+0.2%
|
+1.8%
|
+3.8%
|
+1.8%
|
+6.9%
|
-1.4%
|
| 2023 |
+14.8%
|
-2.9%
|
+8.6%
|
+3.3%
|
+3.9%
|
+4.7%
|
+5.7%
|
-1.5%
|
-2.9%
|
-1.3%
|
+7.8%
|
+4.4%
|
| 2022 |
-4.8%
|
-7.4%
|
+0.7%
|
-14.1%
|
+1.9%
|
-9.6%
|
+3.9%
|
-3.5%
|
-11.8%
|
+0.7%
|
+6.8%
|
-6.6%
|
| 2021 |
-0.9%
|
+7.0%
|
+2.6%
|
+6.5%
|
+0.9%
|
+2.9%
|
+1.8%
|
+3.9%
|
-6.3%
|
+0.2%
|
-6.1%
|
+3.3%
|
| 2020 |
+0.5%
|
-5.8%
|
-12.6%
|
+13.7%
|
+7.4%
|
+0.2%
|
+7.6%
|
+8.8%
|
-5.9%
|
-0.3%
|
+10.5%
|
+3.3%
|
| 2019 |
+11.7%
|
-0.5%
|
+2.0%
|
+7.1%
|
-6.0%
|
+4.8%
|
+3.2%
|
-2.5%
|
+0.2%
|
+2.2%
|
+3.8%
|
+2.3%
|
| 2018 |
-
|
-
|
-
|
-
|
-
|
-
|
-2.2%
|
+1.5%
|
-0.1%
|
-6.0%
|
-2.2%
|
-8.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
META
|
META PLATFORMS INC CLASS A |
15.7 % |
|
GOOGL
|
ALPHABET INC CLASS A |
8.7 % |
|
GOOG
|
ALPHABET INC CLASS C |
7.1 % |
|
NFLX
|
NETFLIX INC |
6.4 % |
|
LYV
|
LIVE NATION ENTERTAINMENT INC |
4.7 % |
|
TTWO
|
TAKE-TWO INTERACTIVE SOFTWARE INC |
4.5 % |
|
TMUS
|
T-MOBILE US INC |
4.4 % |
|
CMCSA
|
COMCAST CORP CLASS A |
4.4 % |
|
VZ
|
VERIZON COMMUNICATIONS INC |
4.4 % |
|
EA
|
ELECTRONIC ARTS INC |
4.3 % |
Top 10 holdings shown, out of 25 total holdings.
Related ETFs: XLC vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLC tracks the Communication Services Select Sector Index, a market-cap-weighted subset of the S&P 500. The index includes companies classified under the Global Industry Classification Standard (GICS) as communication services providers. The fund primarily holds common stocks of large-cap U.S. firms, with periodic rebalancing to align with index changes. XLC does not use derivatives or leverage, opting for physical replication of its benchmark. Rebalancing occurs quarterly to maintain accurate sector representation.
Frequently Asked Questions
What companies are included in XLC?
XLC holds major communication services firms like Meta (Facebook), Alphabet (Google), Netflix, Disney, and AT&T, among others.
How often does XLC rebalance?
XLC rebalances quarterly to match the composition of its underlying index, the Communication Services Select Sector Index.
Is XLC a good long-term investment?
XLC can be a solid long-term holding for investors bullish on the growth of digital media, telecom, and internet services, though sector-specific risks should be considered.
Does XLC pay dividends?
Yes, XLC pays dividends quarterly, derived from the dividends of its underlying holdings.
Industry Overview
The Communication Services Select Sector SPDR Fund (XLC) invests in companies that provide communication services, including telecom giants, media conglomerates, and digital entertainment platforms. This sector is characterized by rapid technological advancements, evolving consumer preferences, and regulatory scrutiny. Investing in XLC offers exposure to firms driving global connectivity, content creation, and digital advertising. The sector's growth is fueled by increasing demand for streaming services, social media, and 5G infrastructure, but it also faces challenges like competition and shifting regulations.
Alternative Comparison
Compared to peers like VOX (Vanguard Communication Services ETF) and FCOM (Fidelity MSCI Communication Services Index ETF), XLC stands out for its pure-play focus on S&P 500 communication services stocks. While VOX and FCOM offer similar exposure, XLC typically has a lower expense ratio and higher liquidity. Unlike IYZ (iShares U.S. Telecommunications ETF), which leans heavily into telecom, XLC provides broader exposure to media and digital services companies.
Issuer Overview
XLC is issued by State Street Global Advisors (SSGA), one of the largest ETF providers globally. SSGA is known for its SPDR ETF family, which includes sector-specific and broad-market funds. The firm emphasizes low-cost, transparent, and liquid investment products, making XLC a reliable choice for sector-focused investors.
Conclusion
XLC is a cost-effective and liquid way to invest in the communication services sector, offering exposure to industry leaders driving digital transformation. Its market-cap-weighted approach ensures alignment with the performance of major players, though investors should be mindful of sector concentration risks. For those seeking targeted exposure to telecom, media, and internet giants, XLC remains a compelling choice.
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